Heineken CEO to step down as brewer navigates market challenges
What's the story
Dolf van den Brink, the Chief Executive Officer (CEO) of Dutch brewing giant Heineken, has announced his decision to step down from the role on May 31. He has been at the helm of the world's second-largest beer maker since June 2020, when he took over amid the COVID-19 pandemic. The company's board will now begin searching for a successor.
Transition period
Advisory role post-resignation
After stepping down, van den Brink will continue to support Heineken in an advisory capacity for eight months. The decision comes as the company looks to implement its long-term strategy until 2030. Heineken has faced challenges with declining beer sales and market disruptions in recent years, and the leadership transition aligns with the company's strategic goals and timing.
Strategic shift
Nw strategy and market challenges
In October, Heineken unveiled a new strategy for 2030, focusing on specific brands and markets. The company has struggled with beer sales due to factors like bad weather and political uncertainty. It has also faced disruptions in key growth markets such as Nigeria and Vietnam, which have affected its performance.
Market response
Stock performance and future prospects
Following the announcement of van den Brink's resignation, Heineken's shares fell by as much as 3.2% in early trading in Amsterdam, the biggest intraday fall since July. The company had previously warned that its annual profit would be lower than expected due to weaker growth in Europe and the Americas. Despite these challenges, Jefferies analysts expect no major change in strategy with this leadership transition.